Pike, Neustar, Jeld-Wen, CBS Radio, Internet Brands, Trader break; Equinox sets changes

By Sara Rosenberg

New York, March 2 – Pike Corp. moved some funds to its first-lien term loan from its second-lien term loan and then the debt freed up for trading on Thursday, and deals from Neustar Inc., Jeld-Wen Inc., CBS Radio Inc., Internet Brands Inc. and Trader Corp. surfaced in the secondary market as well.

In more happenings, Equinox Holdings Inc. tightened spreads and original issue discounts on its first-and second-lien term loans, and Atrium Innovations Inc. accelerated the commitment deadline on its add-on first-lien term loan.

Furthermore, Safe-Guard Products International (SG Acquisition Inc.), HCA Inc., Dynacast International, Kenan Advantage Group Inc. and Resolute Investment Managers released price talk with launch.

Pike retranches

Pike lifted its seven-year covenant-light first-lien term loan to $520 million from $490 million and cut its 7.5-year covenant-light second-lien term loan to $100 million from $130 million, according to a market source.

As before, the first-lien term loan is priced at Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99.5 and has 101 soft call protection for six months, and the second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and a discount of 99 and has hard call protection of 102 in year one and 101 in year two.

Earlier in syndication, pricing on the first-lien loan was lowered from Libor plus 425 bps and the discount was tightened from 99, and the spread on the second-lien loan was reduced from Libor plus 850 bps and the discount was revised from 98.

The company’s $720 million senior secured credit facility also includes a $100 million five-year revolver (B1/B).

Pike starts trading

With final terms in place, Pike’s credit facility emerged in the secondary market on Thursday, with the first-lien term loan quoted at par ½ bid, 101 offered and the second-lien term loan quoted at par bid, 101 offered, a trader remarked.

Morgan Stanley Senior Funding Inc., KeyBanc Capital Markets Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used by chief executive officer Eric Pike, Global Partnership Investing, ClearSky and NextEra to buy out the current sponsor, Court Square Capital Partners, and to refinance existing bank debt.

Closing is expected on March 10.

Pike is a Mount Airy, N.C.-based specialty construction and engineering firm.

Neustar hits secondary

Neustar’s term debt freed to trade too, with the $350 million 2.5-year first-lien term loan B-1 quoted at par ¾ bid, 101¼ offered before moving up to 101 3/8 bid, 101 5/8 offered, the $975 million seven-year first-lien term loan B-2 quoted at 101 bid, 101½ offered before rising to 101½ bid, 101¾ offered, and the $325 million eight-year second-lien term loan quoted at par bid, 101 offered before moving up to 101 bid, 102 offered, a trader said.

Pricing on the term loan B-1 is Libor plus 325 bps with a 0% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

The term loan B-2 is priced at Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. This tranche also has 101 soft call protection for six months.

And, the second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and was issued at a discount of 98.5. This loan has hard call protection of 102 in year one and 101 in year two.

Neustar being acquired

Proceeds from Neustar’s term loans will be used with equity to fund its buyout by Golden Gate Capital for $33.50 per share in cash. The transaction is valued at about $2.9 billion, including debt to be refinanced.

Bank of America Merrill Lynch, UBS Investment Bank, Jefferies Finance LLC, Credit Suisse Securities (USA) LLC, Mizuho, Societe Generale and Angel Island Capital are leading the loans, with Bank of America left lead on the first-lien debt and UBS left lead on the second-lien loan.

During syndication, the issue price on the term loan B-1 was tightened from 99.5, the term loan B-2 was upsized from $950 million while the spread firmed at the low end of the Libor plus 375 bps to 400 bps talk, and the discount was set at the tight end of the 99 to 99.5 talk, and the second-lien term loan was downsized from $350 million as the spread finalized at the low end of the Libor plus 800 bps to 850 bps talk, and the discount firmed at the wide end of the 98.5 to 99 talk. Also, the MFN was changed to 50 bps for 18 months from 75 bps for 12 months.

Closing on the buyout is expected by the end of the third quarter, subject to shareholder approval, regulatory approval and other customary conditions.

Neustar is a Sterling, Va.-based provider of real-time information services.

Jeld-Wen tops par

Another deal to break was Jeld-Wen’s $1,237,000,000 covenant-light term loan due July 1, 2022, with levels quoted at 101¼ bid, 101¾ offered, according to a trader.

Pricing on the loan is Libor plus 300 bps with a step-down to Libor plus 275 bps when total net leverage is less than 2.25 times with a 1% Libor floor. The debt has 101 soft call protection for six months and was issued at par.

Barclays and Bank of America Merrill Lynch are leading the deal that will reprice an existing term loan down from Libor plus 350 bps with a step-up to Libor plus 375 bps when total net leverage is greater than 3.5 times and a 1% Libor floor.

Net total leverage is 2.65 times.

Closing is targeted for Tuesday.

Jeld-Wen is a Klamath Falls, Ore.-based door and window manufacturer.

CBS Radio frees up

CBS Radio’s $500 million seven-year senior secured term loan B (Ba3/BB-) began trading too, with levels seen at par ¼ bid, par ¾ offered, a market source said.

Pricing on the loan is Libor plus 275 bps with a 0% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months and a ticking fee of half the spread from days 31 to 90 and the full spread thereafter.

On Wednesday, pricing on the term loan was cut from talk of Libor plus 300 bps to 325 bps, the issue price was revised from 99.5, and the ticking fee was changed from half the spread from days 31 to 60 and the full spread thereafter.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are leading the deal.

CBS Radio/Entercom merging

CBS Radio’s term loan is being done in connection with its merger with Entercom Communications Corp. and will be used to refinance Entercom’s existing $465 million term loan B and to pay down $28 million of Entercom’s convertible preferreds.

Upon completion, CBS Radio shareholders will receive about 105 million Entercom shares, or 72% of all outstanding shares of the combined company on a fully diluted basis. Existing Entercom shareholders will own 28% of the combined company on a fully diluted basis.

Closing is expected in the second half of this year, subject to approval by Entercom shareholders, regulatory approvals and other customary conditions.

The combined radio broadcasting company will be known as Entercom and will be based in Philadelphia.

Internet Brands breaks

Internet Brands’ $340 million strip of funded and delayed-draw covenant-light incremental first-lien term loan debt due July 2021 hit the secondary market too, with levels quoted at par bid, par ½ offered, according to a market source.

The incremental loan, of which $120 million is delayed-draw, is priced at Libor plus 375 bps with a leverage-based step-up to Libor plus 400 bps and a 1% Libor floor, in line existing first-lien term loan pricing. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months and a ticking fee of the full spread plus the floor from days 31 to 180 with funding into escrow thereafter.

On Wednesday, the incremental loan was upsized from $300 million, including a $100 million delayed-draw tranche, and the discount was modified from talk of 99 to 99.5.

Credit Suisse Securities (USA) LLC, KKR Capital Markets LLC, RBC Capital Markets LLC, Mizuho Bank Ltd. and Sumitomo Mitsui Bank Corp. are leading the deal that will be used to fund cash to the balance sheet for future acquisitions.

The borrowers are MH Sub I LLC and Micro Holding Corp.

Internet Brands is an El Segundo, Calif.-based provider of vertically focused online media and software services.

Trader begins trading

Trader Corp.’s $395 million first-lien term loan due September 2023 broke as well, with levels seen at par ¼ bid, 101 offered, a market source remarked.

The term loan is priced at Libor plus 325 bps with a 1% Libor floor, and it was issued at par. Included in the debt is 101 soft call protection for six months.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to reprice an existing first-lien term loan from Libor plus 400 bps with a 1% Libor floor.

Closing is expected on March 28.

Trader Corp. is an Etobicoke, Ont.-based digital automotive marketplace.

Equinox flexes lower

Back in the primary market, Equinox Holdings trimmed pricing on its $800 million seven-year covenant-light first-lien term loan (B1/B+) to Libor plus 325 bps from Libor plus 350 bps and moved the original issue discount to 99.75 from 99.5, while leaving the 1% Libor floor and 101 soft call protection for six months intact, according to a market source.

Also, pricing on the $200 million eight-year covenant-light second-lien term loan (Caa1/CCC+) was reduced to Libor plus 700 bps from Libor plus 750 bps and the discount was changed to 99.25 from 99, the source said. This tranche still has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

The company’s $1.15 billion credit facility includes a $150 million five-year revolver (B1/B+) as well.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

Bank of America Merrill Lynch and Morgan Stanley Senior Funding Inc. are leading the deal, with Bank of America left lead on the first-lien debt and Morgan Stanley left lead on the second-lien debt.

Proceeds will be used by the New York-based exercise and fitness company to refinance an existing credit facility.

Atrium revises deadline

Atrium Innovations moved up the commitment deadline on its fungible $190 million add-on first-lien term loan (B2) to 5 p.m. ET on Friday from 5 p.m. ET on Wednesday, a market source said.

The add-on term loan is talked at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.5.

With this transaction, pricing on the company’s existing first-lien term loan will be increased to Libor plus 350 bps with a 1% Libor floor from Libor plus 325 bps with a 1% Libor floor.

Including the add-on, the U.S. first-lien term loan will total $530.4 million.

RBC Capital Markets, Deutsche Bank Securities Inc., National Bank of Canada and TD Securities are leading the deal.

Proceeds from the add-on loan will be used to repay the company’s existing euro first-lien term loan and second-lien term loan.

Permira is the sponsor.

Atrium is a Westmount, Quebec-based developer and manufacturer of nutritional health products.

Safe-Guard details emerge

Safe-Guard held its bank meeting on Thursday, at which lenders were presented with a $200 million seven-year first-lien term loan talked at Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on March 16, the source said.

The company is also getting a $70 million eight-year second-lien term loan that was pre-placed.

UBS Investment Bank, Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance existing debt and fund a dividend.

Safe-Guard is an Atlanta-based specialty insurance company.

HCA seeks B-9 loan

HCA launched without a call a $1,489,000,000 senior secured term loan B-9 (BBB-) talked at Libor plus 200 bps to 225 bps with no Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on March 9, the source said.

Bank of America Merrill Lynch is leading the deal that will be used to refinance a term loan B-6 priced at Libor plus 325 bps with no Libor floor.

HCA is a Nashville, Tenn.-based health care services provider.

Dynacast sets guidance

Dynacast International held its lenders’ presentation, launching its $280 million add-on first-lien term loan at talk of Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.75 to par, a market source remarked.

J.P. Morgan Securities LLC, Barclays and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the acquisition of Signicast LLC.

Closing is expected late this month, subject to regulatory approvals and customary conditions.

Dynacast is a Charlotte, N.C.-based manufacturer of precision engineered metal components. Signicast is a Hartford, Wis.-based manufacturer of precision investment cast parts.

Kenan Advantage launches

Kenan Advantage Group hosted a lender call at 2 p.m. ET to launch a fungible $125 million add-on term loan due July 2022 (B+) talked at Libor plus 300 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

KeyBanc Capital Markets LLC is leading the deal that will be used for general corporate purposes.

Kenan Advantage is a North Canton, Ohio-based provider of liquid bulk transportation services to the fuels, chemicals, liquid foods and merchant gas markets.

Resolute discloses talk

Resolute Investment Managers came out with talk of Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99.5 on its fungible $75 million add-on first-lien term loan that launched with a lender call in the morning, according to a market source.

The add-on and the existing first-lien term loan will get 101 soft call protection for six months, the source said.

Commitments are due on March 14.

RBC Capital Markets and Barclays are leading the deal that will be used to help fund the acquisition of a controlling interest of Shapiro Capital Management LLC.

Resolute Investment, formerly known as American Beacon Advisors Inc., is an Irving, Texas-based provider of investment advisory services to institutional and retail markets. Shapiro is an Atlanta-based investment adviser.

Lakeview sets deadline

In other news, Lakeview Loan Servicing LLC came out with a commitment deadline of March 24 on its $500 million five-year secured term loan that launched with a morning bank meeting, a market source remarked.

As previously reported, price talk on the term loan is Libor plus 400 bps with a 0.5% Libor floor and upfront fees that are tiered based on commitment size.

M&T Bank and Fifth Third Bank are leading the deal that will be used to fund the purchase of mortgage servicing rights and for general corporate purposes.

Lakeview Loan is a Coral Gables, Fla.-based mortgage finance company.

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